Gaming and Leisure Properties Q4 Earnings Call Highlights
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2026 AFFO guidance: GLPI issued 2026 AFFO guidance of $1.207B–$1.222B (or $4.06–$4.11 per diluted share/OP unit) and is backing multi-year growth with about $2.6 billion of capital commitments over the next 24 months, including $575M–$650M of expected 2026 development funding (guidance excludes future transactions).
Pipeline and transactions: The company closed the $700M acquisition of Bally’s Lincoln at an 8% cap, committed $440M to the Cordish Live! Virginia project, and has roughly $740M remaining to spend on Bally’s Chicago (project >20% complete, targeting a first‑half 2027 opening).
Balance sheet and operating trends: GLPI’s leverage was 4.6x (pro forma just under 4.9x after Lincoln) and management says it can fund current commitments via existing capacity, forward equity and free cash flow without near‑term capital markets access; Q4 real estate income rose by >$17M YoY, driven by >$23M of cash rent increases, with master‑lease rent coverage of about 1.69x–2.6x.
Gaming and Leisure Properties (NASDAQ:GLPI) executives highlighted a growing development and acquisition pipeline, improving year-over-year real estate income, and 2026 AFFO guidance that reflects ongoing funding commitments but excludes potential future transactions, during the company’s fourth-quarter 2025 earnings call.
Management said it is entering 2026 with “the most visible line of sight” toward multi-year AFFO growth in recent memory, supported by a reported $2.6 billion of future capital commitments expected to be deployed over the next 24 months. The company also emphasized that its balance sheet is positioned to support planned growth without the need for incremental capital, while tenant health remains solid based on rent coverage metrics.
GLPI said it recently completed the acquisition of Bally’s Lincoln for $700 million at an 8% cap rate. Management noted the asset had long been a target for the company. Executives said the acquisition was facilitated after Bally’s announced an Ares refinancing, which resolved a lender consent issue that had previously been an impediment.
Management also said it closed on the real estate related to the Cordish Live! Virginia project and committed an incremental $440 million toward development. In addition, GLPI said funding remains ongoing for Bally’s Chicago, with roughly $740 million left to spend as of Dec. 31, and reiterated expectations for a first-half 2027 opening.
On the tribal front, the company said it expects the Ione Band’s Acorn Ridge Casino to open the following week, while development activity at Caesars Republic Sonoma continues. Executives added that GLPI is having “productive conversations” with other tribes about using its financing structure, though they said nothing was imminent.
During Q&A, management updated its pipeline disclosure, noting that after the Lincoln closing, the remaining pipeline is about $1.9 billion. The company reiterated that its 2026 guidance includes $575 million to $650 million in anticipated development funding for projects including Chicago, Ione, Marquette, Dry Creek, and Virginia.
Chief Financial Officer Desiree Burke said fourth-quarter 2025 total income from real estate exceeded the prior-year quarter by more than $17 million, driven by over $23 million of cash rent increases from acquisitions and lease escalations.
She broke out several drivers of cash rent growth, including:
Bally’s: cash rent increases of $6.6 million from the Bally’s Kansas City and Shreveport real estate acquisition; $2.6 million from the Chicago lease; and $1.9 million from the Bell development.
Penn: $4.4 million from Joliet and M Resort funding; and $3.2 million from Sunland Park and a strategic acquisition.
Escalators and percentage rent adjustments: approximately $4.3 million across leases.
Burke said a combination of non-cash revenue gross-ups, investment in lease adjustments, and straight-line rent adjustments partially offset the cash rent increases, resulting in a collective year-over-year decrease of $6.2 million for those non-cash items.
Operating expenses declined by $37.8 million, primarily due to a non-cash adjustment in the provision for credit loss, according to Burke.
GLPI issued 2026 AFFO guidance of $1.207 billion to $1.222 billion, or $4.06 to $4.11 per diluted share and OP unit. Burke said the guidance does not include the impact of future transactions but does include anticipated development funding of approximately $575 million to $650 million spread relatively evenly by quarter throughout 2026.
The guidance also assumes:
The $700 million Lincoln acquisition (now completed).
An expected late second-quarter 2026 acquisition of Penn’s Aurora facility for $225 million.
Settlement of $363 million of forward equity on June 1, 2026.
Burke said GLPI’s leverage ratio was 4.6x, which she described as well below the company’s targeted and historic levels. Management added that layering in the Lincoln transaction would bring leverage to just below 4.9x, and that GLPI expects to fund its current commitments through existing balance sheet capacity, forward equity, and free cash flow, without a near-term need to access capital markets.
Executives also cited rent coverage on the company’s master leases ranging from 1.69x to 2.6x as of the prior quarter end, and reiterated that development projects generate cash rent upon funding.
On Bally’s Chicago, management said the project is “moving along nicely” and estimated it is over 20% complete. Executives said the hotel structure is currently at level 21 of 34 floors, curtain wall glass installation has begun, and structural work on the casino podium is progressing. Management reiterated that, despite a request to extend the temporary facility, its internal timeline remains consistent with a first-half 2027 opening.
For Live! Virginia, management said a temporary facility opened in January and that site preparation is beginning for the permanent development. Executives said GLPI does not have a definitive opening timeline from Cordish, and emphasized that Cordish’s capital is expected to be deployed first, with GLPI funding likely in the latter half of 2026 into 2027. Management also said the “lion’s share” of the remaining $440 million spend is expected in 2027, and confirmed the arrangement is a traditional lease rather than including percentage rent tied to food and beverage.
In Las Vegas, executives discussed progress on the A’s stadium, saying it appears to be moving quickly and may be slightly ahead of schedule. Management said it is waiting for Bally’s to finalize integrated resort plans and noted GLPI currently has a remaining commitment of $125 million on the site, with any additional investment dependent on project details and rent coverage considerations.
Regarding New York, management said it views Bally’s planned development as an attractive opportunity and remains in discussions, but acknowledged there is “no shortage” of capital providers and said it is “very unlikely” GLPI would provide the majority of the capital for a $4 billion project. Executives said they are not exclusive to Bally’s and would consider other New York projects if there is a path to owning real estate, but stressed GLPI would not compete down to a cap rate it views as dilutive.
In closing remarks, management said it is “very bullish” on 2026 and 2027 and intends to continue working to add to and extend its pipeline.
Gaming and Leisure Properties, Inc (NASDAQ: GLPI) is a real estate investment trust (REIT) specializing in the ownership and management of gaming and entertainment properties. Established in 2013 as a spin-off from Penn National Gaming, the company was designed to acquire and hold real estate assets associated with casinos, racetracks and other gaming facilities, while leasing those assets back to operating partners under long-term, triple-net lease agreements.
The company’s core activities involve identifying attractive gaming real estate, structuring lease agreements that align tenant incentives with property performance, and actively managing its portfolio to enhance asset value.
